The Dollar fell to a record low against the Euro and a basket of currencies on Thursday, pressured by soft US economic data and sluggish corporate earnings that bolstered chances of an interest rate cut. Forex players strengthened the case for a cut in the target federal funds rate from the current 4.75% to avert a sharper slowdown; US short-term rate futures on Thursday showed a 68% implied chance of a rate cut at the Fed’s next monetary policy meeting on Oct. 30-31, from Monday, expectations around 35%; The Philadelphia Federal Reserve business activity survey was the latest report to provide evidence of a slumping US economy. Earlier in the session, higher-than-expected initial weekly US jobless claims also gave the dollar a negative tone. Both reports followed dire US housing data on Wednesday, suggesting the slowdown is deeper than many initially thought.
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